Convergence of Donor Assistance Convergence of Donor Assistance towards developing the towards developing the

SME Sector in the PhilippinesSME Sector in the Philippines

Martina Vahlhaus Martina Vahlhaus on behalf of the SME Subon behalf of the SME Sub--groupgroup

19 July 2006 | Shangri19 July 2006 | Shangri--la Hotel, la Hotel, MakatiMakati CityCity

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Background: Background: The Paris Declaration on Aid EffectivenessThe Paris Declaration on Aid Effectiveness

ObjectivesObjectives–– improve effectiveness of development cooperationimprove effectiveness of development cooperation–– Contribute to achieve Millennium Development GoalsContribute to achieve Millennium Development Goals

4. Results(mutual

accountability)

3. Harmonization(donors – donors)

2. Alignment(donors – partners)

1. Ownership(partner countries) Partners

set the agenda

Aligning with

partners’ agenda

Using partners’ systems

Establishing common

arrangements

Simplifying procedures

Sharing information

3

Ownership:Ownership:

Partners (DTI) Partners (DTI) set the Agendaset the Agenda

•• SMED Plan and SMED Action Plan are owned by SMED Plan and SMED Action Plan are owned by the SMED Council, DTIthe SMED Council, DTI

•• Donors respect DTI’s policies and help strengthen Donors respect DTI’s policies and help strengthen their capacity to implement (result oriented) and their capacity to implement (result oriented) and monitor results monitor results

•• Since Feb. 2006 Since Feb. 2006 –– DTI DTI UsecUsec. Mel Alonzo has taken the lead in donor. Mel Alonzo has taken the lead in donor--coco--

ordination ordination –– The DTI Secretary has taken leadership with regard to The DTI Secretary has taken leadership with regard to

streamlining of business licensing/registration streamlining of business licensing/registration (as announced during the final plenary of the Philippine (as announced during the final plenary of the Philippine Development Forum last March 06)Development Forum last March 06)

4. Results(mutual

accountability)

3. Harmonization(donors – donors)

2. Alignment(donors – partners)

1. Ownership(partner countries)

Partners set the agenda

Aligning with partners’ agenda

Using partners’ systems

Establishing common arrangements

Simplifying procedures

Sharing information

4

Alignment:Alignment:

with Partners’ Agenda, with Partners’ Agenda, within Partners’ Systemwithin Partners’ System

•• 2004 2004 –– donors try to donors try to align to SMED Plan align to SMED Plan (matrix, difficult, (matrix, difficult, too many activities)too many activities)

•• 2005 2005 –– SMEDSMED--Council/DTI/partners Council/DTI/partners pprioritize the SMED rioritize the SMED Plan (CIDA and GTZ)Plan (CIDA and GTZ)

SMED Plan48

Activities

SMED Action Plan10

Groups

Provinces

Provinces

Provinces

4. Results(mutual

accountability)

3. Harmonization(donors – donors)

2. Alignment(donors – partners)

1. Ownership(partner countries)

Partners set the agenda

Aligning with partners’ agenda

Using partners’ systems

Establishing common arrangements

Simplifying procedures

Sharing information

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N, L, N, L, V, MV, M

CIDA, GTZ, IFC, CIDA, GTZ, IFC, TAF, USAID, ILOTAF, USAID, ILO10 10 –– Streamlining of Business Regulatory RequirementsStreamlining of Business Regulatory Requirements

N, V, N, V, MM

ADB, CIDA, ADB, CIDA, IFAD, IFC, GTZ, IFAD, IFC, GTZ, KfWKfW

9 9 –– SME Financing Support ProgramsSME Financing Support Programs

N, L, N, L, V, MV, MCIDA, CIDA, ILOILO8 8 –– Entrepreneurship TrainingEntrepreneurship Training

7 7 –– Information Technology Appreciation and ApplicationInformation Technology Appreciation and Application

6 6 –– Increased Productivity and QualityIncreased Productivity and Quality

JICAJICA5 5 –– Product Development and Design ServicesProduct Development and Design Services

4 4 –– Enhanced Support for Trade Fairs & Access to Market ServicesEnhanced Support for Trade Fairs & Access to Market Services

LLILOILO3 3 –– Facilitating Partnership / Linkages for CompetitivenessFacilitating Partnership / Linkages for Competitiveness

N, V, N, V, MM

CIDA, JICA, CIDA, JICA, GTZ, USAIDGTZ, USAID2 2 –– SME Counseling and Advisory and Upgrading of SME CentersSME Counseling and Advisory and Upgrading of SME Centers

NNADB, CIDAADB, CIDA1 1 –– SME Information SupportSME Information Support

CoverCover--age*age*

Donor / Donor / ProgressProgressActivity GroupActivity Group

SME Action Plan Activity GroupsSME Action Plan Activity Groups

Alignment:Alignment:

with Partners’ Agenda, with Partners’ Agenda, within Partners’ Systemwithin Partners’ System

4. Results(mutual

accountability)

3. Harmonization(donors – donors)

2. Alignment(donors – partners)

1. Ownership(partner countries)

Partners set the agenda

Aligning with partners’ agenda

Using partners’ systems

Establishing common arrangements

Simplifying procedures

Sharing information

*N = National, L = Luzon, V = Visayas, M = Mindanao

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Harmonization:Harmonization:

Establishing Establishing Common Agreements, Common Agreements, Sharing InformationSharing Information

•• Donors and DTI agreed to focus on Donors and DTI agreed to focus on Activity No. 10 “Streamlining of Business Activity No. 10 “Streamlining of Business Regulatory Requirements” with their Regulatory Requirements” with their action plan” (1 year) action plan” (1 year)

•• Donors and DTI agree on common action Donors and DTI agree on common action plan for streamlining business registrationplan for streamlining business registration

•• Common analysis (Consultative Working Group)Common analysis (Consultative Working Group)•• Sharing of Good Practices (Handbook for Sharing of Good Practices (Handbook for LGUsLGUs))•• Advocacy activitiesAdvocacy activities•• Supporting selected Supporting selected LGUsLGUs in Streamliningin Streamlining•• Capacity Building for accelerating smooth business Capacity Building for accelerating smooth business

registration (Training of SME Counselors)registration (Training of SME Counselors)

4. Results(mutual

accountability)

3. Harmonization(donors – donors)

2. Alignment(donors – partners)

1. Ownership(partner countries)

Partners set the agenda

Aligning with partners’ agenda

Using partners’ systems

Establishing common arrangements

Simplifying procedures

Sharing information

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Results and Mutual Results and Mutual Accountability (option 1)Accountability (option 1)

4. Results(mutual

accountability)

3. Harmonization(donors – donors)

2. Alignment(donors – partners)

1. Ownership(partner countries)

Partners set the agenda

Aligning with partners’ agenda

Using partners’ systems

Establishing common arrangements

Simplifying procedures

Sharing information

Transparent Accountable Governance Project (funded by USAID)Transparent Accountable Governance Project (funded by USAID)–– Streamlining of Business Permits and Licensing Process in 6 MindStreamlining of Business Permits and Licensing Process in 6 Mindanao Citiesanao Cities–– Annual Monitoring and Process Documentation of Business Permits Annual Monitoring and Process Documentation of Business Permits and and

Licensing Process in 16 Mindanao Cities Licensing Process in 16 Mindanao Cities –– Capacity Building to Offices involved in BPLSCapacity Building to Offices involved in BPLS

TAFTAF

assists in the institutional development and capacity building oassists in the institutional development and capacity building of business support f business support organizations and trade associations all over Mindanao through torganizations and trade associations all over Mindanao through the Growth with he Growth with Equity in Mindanao (GEM) ProjectEquity in Mindanao (GEM) Project

USAIDUSAID

(GTZ) Small and Medium Enterprise Development for Sustainable Em(GTZ) Small and Medium Enterprise Development for Sustainable Employment ployment Program (SMEDSEP) in the Program (SMEDSEP) in the VisayasVisayas((KfWKfW) Soft Loan) Soft Loan

GDCGDC

“Management Consulting Program for “Management Consulting Program for SMEsSMEs”, a technical cooperation project on ”, a technical cooperation project on capacity building of DTIcapacity building of DTI--SME Counselors SME Counselors JICAJICA

assisting selected assisting selected LGUsLGUs in implementing employment generation programmes in implementing employment generation programmes and adopting and adopting DOLE’sDOLE’s Labour Standards Enforcement FrameworkLabour Standards Enforcement FrameworkILOILO

PEP to provide technical assistance to Mindanao in investment prPEP to provide technical assistance to Mindanao in investment promotion capacityomotion capacityIFCIFC

Local Governance Support Program (LGSP) in ARMM; and the Local GLocal Governance Support Program (LGSP) in ARMM; and the Local Governance overnance Support Program, Phase 2.Support Program, Phase 2.CIDACIDA

developing a National Business Registry that links business datadeveloping a National Business Registry that links business databases of national bases of national agencies (BIR, SSS, NSO, etc.) and agencies (BIR, SSS, NSO, etc.) and LGUsLGUsADBADB

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Results and Mutual Results and Mutual Accountability (option 2)Accountability (option 2)

4. Results(mutual

accountability)

3. Harmonization(donors – donors)

2. Alignment(donors – partners)

1. Ownership(partner countries)

Partners set the agenda

Aligning with partners’ agenda

Using partners’ systems

Establishing common arrangements

Simplifying procedures

Sharing information

Message from the Mayor and BPLO Chief of Ormoc City on Business Registration Streamlining

NOTE: Actual video will be clearer. (video was re-sampled for emailing purposes)

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Results and Mutual Results and Mutual AccountabilityAccountability

Outlook and Results• Development of a

Common Monitoring Framework–Performance Assessment–Measure progress against

accountability

4. Results(mutual

accountability)

3. Harmonization(donors – donors)

2. Alignment(donors – partners)

1. Ownership(partner countries)

Partners set the agenda

Aligning with partners’ agenda

Using partners’ systems

Establishing common arrangements

Simplifying procedures

Sharing information

Action PlanWhat resultsLessons

SMED Activity Groups 1-10

learnedachieved?

Implemented

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Results and Mutual Results and Mutual AccountabilityAccountability

Outlook and Results•• 2005 World Bank Report2005 World Bank Report

•• Minimum of 11 procedures and 48 Minimum of 11 procedures and 48 days to registerdays to register

•• QuestionsQuestions–– Business regulations?Business regulations?–– How many days does it take?How many days does it take?–– Does this reduce the time?Does this reduce the time?–– What are the costs for …?What are the costs for …?–– Are sufficient information and Are sufficient information and

instructions available?instructions available?

4. Results(mutual

accountability)

3. Harmonization(donors – donors)

2. Alignment(donors – partners)

1. Ownership(partner countries)

Partners set the agenda

Aligning with partners’ agenda

Using partners’ systems

Establishing common arrangements

Simplifying procedures

Sharing information

Action PlanWhat resultsLessons

SMED Activity Groups 1-10

learnedachieved?

Implemented

Activity Group

10